National Insurance: introduction

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1. Overview

You pay National Insurance contributions to qualify for certain benefits and the State Pension.

You need a National Insurance number to make sure your National Insurance contributions and tax are recorded against your name only.

This page is also available in Welsh (Cymraeg).

Who pays National Insurance

You pay mandatory National Insurance if you’re 16 or over and are either:

  • an employee earning more than £242 per week from one job
  • self-employed and making a profit of more than £12,570 a year

You can also see rates and thresholds for previous tax years.

You usually do not pay National Insurance, but may still qualify for certain benefits and the State Pension, if you’re either:

  • an employee earning from £123 to £242 a week from one job
  • self-employed and your profits are £6,725 or more a year

Your contributions are treated as having been paid to protect your National Insurance record.

You may be able to pay voluntary contributions to avoid gaps in your National Insurance contributions.

National Insurance classes

There are different types of National Insurance (known as ‘classes’).

The type you pay depends on your employment status and how much you earn.

When you stop paying

If you’re employed, you stop paying Class 1 National Insurance when you reach State Pension age.

If you’re self-employed you stop paying Class 4 National Insurance from 6 April (start of the tax year) after you reach State Pension age.

2. Your National Insurance number

You have a National Insurance number to make sure your National Insurance contributions and tax are recorded against your name only.

Your National Insurance number remains the same for life. It’s made up of 2 letters, 6 numbers and a final letter.

For example, QQ123456B

You’ll usually get a letter confirming your National Insurance number shortly before your 16th birthday. This will be sent to the address HMRC has for you.

If you need your National Insurance number

Your National Insurance number will be on tax-related documents like your payslip or P60. You can also get a letter with it on and find your National Insurance number online.

If you’ve never had a National Insurance number

You can apply for a National Insurance number if you’ve never had one.

Keeping your National Insurance number safe

To prevent identity fraud, do not share your National Insurance number with anyone who does not need it.

These organisations may need to know what your number is:

  • HM Revenue and Customs (HMRC)
  • your employer
  • the Department for Work and Pensions (which includes Jobcentre Plus and the Pension, Disability and Carers Service), if you claim state benefits, or in Northern Ireland the Department for Social Development
  • your local council, if you claim Housing Benefit, or the Northern Ireland Housing Executive
  • Electoral Registration Officers (to check your identity when you register to vote)
  • the Student Loans Company, if you apply for a student loan
  • your pension provider if you have a personal or stakeholder pension
  • your Individual Savings Account (ISA) provider, if you open an ISA
  • authorised financial service providers who help you buy and sell investments like shares, bonds and derivatives - you can check if your provider is authorised
  • Veterans UK

3. National Insurance classes

The class you pay depends on your employment status and how much you earn. See the current rates for Class 1, 2 and 4 contributions.

If you’re employed

Your employer will automatically deduct Class 1 contributions from your pay if you’re both:

  • under State Pension age
  • earning more than £242 a week from one job

Class 1A and Class 1B are only paid by employers on their employees’ expenses or benefits.

If you earn less than £242 a week from one job

If you earn from £123 to £242 a week from one job, you do not usually pay National Insurance but may still qualify for certain benefits and the State Pension.

If you earn less than £123 a week from one job, you can choose to pay voluntary Class 3 contributions to cover gaps in your National Insurance record.

If you’re self-employed

The class you pay depends on your profits.

If your profits are £6,725 or more a year

Class 2 contributions are treated as having been paid to protect your National Insurance record. This means you do not have to pay Class 2 contributions.

If your profits are more than £12,570 a year, you must pay Class 4 contributions.

If your profits are less than £6,725 a year

You do not have to pay anything but you can choose to pay voluntary Class 2 contributions to avoid gaps in your National Insurance record.

If you’re not working

You can choose to pay voluntary Class 3 contributions to cover gaps in your National Insurance record.

4. How much you pay

The amount of National Insurance you pay depends on your employment status and how much you earn.

You can see rates for past tax years.

If you’re employed

You pay Class 1 National Insurance contributions.

The Class 1 National Insurance rates for most people for the 2024 to 2025 tax year are:

Your pay From 6 April 2024 to 5 April 2025
£242 to £967 a week (£1,048 to £4,189 a month) 8%
Over £967 a week (£4,189 a month) 2%

You’ll pay less if:

Employers pay a different rate of National Insurance depending on their employees’ category letters.

How to pay

You pay National Insurance with your tax. Your employer will take it from your wages before you get paid. Your payslip will show your contributions.

If you’re a director of a limited company, you may also be your own employee and pay Class 1 National Insurance through your PAYE payroll.

If you’re self-employed

You pay Class 4 National Insurance, depending on your profits. Most people pay through Self Assessment.

If your profits are £6,725 or more, your Class 2 contributions are treated as having been paid to protect your National Insurance record.

You may be able to pay voluntary contributions to avoid gaps in your National Insurance record if you:

  • have profits of less than £6,725 a year from your self-employment
  • have a specific job (such as an examiner or business owner in property or land) and you do not pay Class 2 National Insurance through Self Assessment

If you have gaps and do not pay voluntary contributions, this may affect the benefits you can get, such as the State Pension.

If you have a specific job and you do not pay Class 2 National Insurance through Self Assessment, you need to contact HM Revenue and Customs (HMRC) to arrange a voluntary payment.

If you’re employed and self-employed

You might be an employee but also do self-employed work. In this case your employer will deduct your Class 1 National Insurance from your wages, and you may have to pay Class 4 National Insurance for your self-employed work.

How much you pay depends on your combined wages and your self-employed work. HMRC will let you know how much National Insurance is due after you’ve filed your Self Assessment tax return.

Directors, landlords and share fishermen

There are different National Insurance rules if you’re a:

You can apply to HMRC to check your National Insurance record and claim a refund if you think you’ve overpaid.

5. What National Insurance is for

National Insurance contributions count towards the benefits and pensions in the table.

Class 1: employees Class 2: self-employed Class 3: voluntary contributions
Basic State Pension Yes Yes Yes
Additional State Pension Yes No No
New State Pension Yes Yes Yes
New Style Jobseeker’s Allowance Yes No No
Contribution-based Employment and Support Allowance Yes Yes No
Maternity Allowance Yes Yes No
Bereavement Support Payment Yes Yes No

Class 4 contributions paid by self-employed people with a profit of £12,570 or more do not count towards state benefits.

6. Help if you're not working

Your benefits could be affected if there are gaps in your National Insurance record. National Insurance credits can help to avoid gaps in your record and protect your benefits.

You can get credits if you cannot pay National Insurance contributions, for example, if:

  • you’re unable to work due to illness
  • you’re caring for someone

If you’re not working or getting credits you can also top up your National Insurance with voluntary contributions.

7. Change of circumstance

You must tell HM Revenue and Customs (HMRC) if you: